Determine the one machine that should be selected

Reference no: EM13199640

Engineering Economics 6th edition, Mountain Pass Canning Company has determined that any one of four machines can be used in one phase of its canning operation. The costs of the machines are estimated below, and all machines have a 10-year life. If the MARR is 12% per year, determine the one machine that should be selected on the basis of the rate of return analysis (using the PW ROR equation). Machine 1: -15,000; +1,000; +4,000; Machine 2: -25,000; -500; +6,000; Machine 3: -18,000; +2,000; +5,000; Macine 4: -35,000; -700; +8,000. (For each machine the numbers represent, in order: First Cost, ;SalvageValue,; Annual income.

Reference no: EM13199640

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